Friday 08 November 2019

8 November 2019 - US-based specialty rental equipment provider Nesco Holdings, Inc. (NYSE: NSCO) has closed the previously announced acquisition of Minnesota, US-based specialty rentals, service and truck upfitting company Truck Utilities, Inc., the company said.
Truck Utilities serves the electric transmission, distribution, telecom and other regional end-markets.
The company provides specialized fleet and equipment, service, upfit, parts, tools and accessories to the Upper Midwest region from its three facilities located in St. Paul, Fargo and Kansas City.
Truck Utilities' current fleet includes 132 specialty units with an average age of 2.3 years and original equipment cost of USD 44m.
The purchase price is USD 42.2m prior to certain capital expenditures to support fleet additions, as well as other customary adjustments.
For the last twelve months ended September 30, 2019, Truck Utilities generated Adjusted EBITDA of USD 8.2m.
The transaction is anticipated to have the potential to create approximately USD 4m of annual revenue and cost synergies.
Nesco expects the transaction to be immediately accretive to earnings per share.
The company financed the transaction by drawing on its asset-based credit facility. As a result of the transaction, Nesco's leverage metric declined on a pro forma basis (including anticipated synergies).
Nesco is one of the largest providers of specialty equipment, parts, tools, accessories and services to the electric utility transmission and distribution, telecommunications and rail markets in North America.
The company offers its specialized equipment to a diverse customer base for the maintenance, repair, upgrade and installation of critical infrastructure assets including electric lines, telecommunications networks and rail systems.
Nesco's coast-to-coast rental fleet of more than 4,300 units includes aerial devices, boom trucks, cranes, digger derricks, pressure drills, stringing gear, hi-rail equipment, repair parts, tools and accessories.